Electrolux Group to procure from Taiwan

Taipei, Oct. 30, 2003 (CENS)--Electrolux Group of Sweden, the world's largest home appliance conglomerate, is scheduled to show sample products it will purchase from Taiwan at the Taipei International Convention Center (TICC), according to China External Trade Development Council (CETRA).

CETRA said that Electrolus' Asia procurement headquarters is located in Hong Kong and used to purchase only small-volume items from Taiwan in the past. In a bid to upgrade product quality and cut costs, CETRA said, Electrolus decided to boost the ratio of parts procurement from low-cost regions and set up an international procurement office (IPO) in Taiwan early this year. Through the assistance of CETRA, the Swedish group has also effectively built up contacts with many local suppliers.

According to CETRA, Electrolus plans to procure several major items from the island through the scheduled procurement show, including machines, electrical machinery products, electronic parts and components as well as molds and dies.

CETRA said that Electrolux procures about US$10 billion worth of products internationally per year, among which parts and components account for about 65%. To boost competitiveness, the council said, Electrolux has decided to elevate the ratio of procurements from low-cost countries (LLC) to 30%, including at least US$400 million from Asia next year.

CETRA estimated that Electrolux's move would bring at least NT$1.7 billion(US$48.57 million at US$1: NT$34) worth of business to the island in the first year and the value is expected to gradually expand in the future.

According to Electrolux's IPO representatives in Taiwan, the Swedish group has rapidly set up ties CETRA with many possible local suppliers within a few months, compared to several years needed in the past international procurement projects.

In addition to the procurement products show, CETRA said, Electrolux would also hold procurement policy seminars and meetings with prospective suppliers. At the show, Electrolux would exhibit several hundreds of items including machinery parts, electronic parts and components, chemical parts (glass products and plastic materials etc.), molds/dies, finished original equipment manufacturing (OEM) products, and other parts and components.

CETRA said that it has arranged 50 respective meetings between Electrolux's IPO representatives from other Asia nations and local suppliers.

CETRA said that the Electrolux Group is the world's largest producer of powered appliances for kitchen, cleaning and outdoor use, such as refrigerators, washing machines, cookers, vacuum cleaners, chainsaws, lawn mowers, and garden tractors. Every year, customers in more than 150 countries buy more than 55 million Electrolux Group products for both consumer and professional use sold under famous brands such as AEG, Electrolux, Zanussi, Frigidaire, Eureka and Husqvarna.